In other words, market timing is difficult and risky, and making the wrong moves will lock in paper losses that may otherwise disappear over time. So you buy, you hold on for dear life -- hodl -- and you build wealth in the long haul.
Pros and cons of hodl
Hodling sounds a lot like the long-term buy-and-hold strategy The Motley Fool employs in the stock market. Generally speaking, we recommend owning stocks for at least five years. The wealth-building benefits of compound returns make a bigger difference in a longer time frame. The same philosophy should work for high-quality cryptocurrencies as well.
On the downside, not every crypto ticker is built to last. There are thousands of cryptocurrencies on the market today, and the number of long-term winners in that group is much smaller. Some cryptocurrencies are jokes, others are money-making frauds, and another group has all the right intentions but flawed technical designs.